Offshore staff

LONDON -- Tullow Oil Plc. has reached an agreement to sell Itochu Corp. 20% interest in production license No. 001 offshore Namibia, which contains the Kudu gas field.

To earn the 20% interest, Itochu will pay 40% of the cost of two appraisal wells. Intochu will make further financial payments depending on the ultimate volume of reserves developed and will provide Tullow with beneficial development financing for the project. The transaction is subject to partner pre-emption rights and Namibian government approvals.

The objective of the two-well appraisal program is to establish commercially productive flow rates from the extensive Kudu East reservoir originally tested by the Kudu-5 well.

ThePride South Seas semisubmersible is scheduled to arrive on location at the end of April. Each appraisal well is expected to take approximately 80 days to drill.

4/5/2007